Five Ways Trade Currencies

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  • Good Morning, my name is Kathy Lien, the Chief Currency Strategist of Forex Capital Markets.It is certainly good to see so many people interested in foreign exchange. If you haven’t realized it yet, currencies have recently become one of the hottest products to trade. With $1.9 trillion in daily turnover, it is the largest market in the world. In the past, access to this mkt was restricted to large players such as hedge funds, CTAs and institutional investors due to regulation, capital requirements and technology.
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  • Good Morning, my name is Kathy Lien, the Chief Currency Strategist of Forex Capital Markets.It is certainly good to see so many people interested in foreign exchange. If you haven’t realized it yet, currencies have recently become one of the hottest products to trade. With $1.9 trillion in daily turnover, it is the largest market in the world. In the past, access to this mkt was restricted to large players such as hedge funds, CTAs and institutional investors due to regulation, capital requirements and technology.
  • It is certainly good to see so many people interested in foreign exchange. If you haven’t realized it yet, currencies have recently become one of the hottest products to trade. With $1.9 trillion in daily turnover, it is the largest market in the world. In the past, access to this mkt was restricted to large players such as hedge funds, CTAs and institutional investors due to regulation, capital requirements and technology.
  • Good Morning, my name is Kathy Lien, the Chief Currency Strategist of Forex Capital Markets.It is certainly good to see so many people interested in foreign exchange. If you haven’t realized it yet, currencies have recently become one of the hottest products to trade. With $1.9 trillion in daily turnover, it is the largest market in the world. In the past, access to this mkt was restricted to large players such as hedge funds, CTAs and institutional investors due to regulation, capital requirements and technology.
  • Good Morning, my name is Kathy Lien, the Chief Currency Strategist of Forex Capital Markets.It is certainly good to see so many people interested in foreign exchange. If you haven’t realized it yet, currencies have recently become one of the hottest products to trade. With $1.9 trillion in daily turnover, it is the largest market in the world. In the past, access to this mkt was restricted to large players such as hedge funds, CTAs and institutional investors due to regulation, capital requirements and technology.
  • Good Morning, my name is Kathy Lien, the Chief Currency Strategist of Forex Capital Markets.It is certainly good to see so many people interested in foreign exchange. If you haven’t realized it yet, currencies have recently become one of the hottest products to trade. With $1.9 trillion in daily turnover, it is the largest market in the world. In the past, access to this mkt was restricted to large players such as hedge funds, CTAs and institutional investors due to regulation, capital requirements and technology.
  • Good Morning, my name is Kathy Lien, the Chief Currency Strategist of Forex Capital Markets.It is certainly good to see so many people interested in foreign exchange. If you haven’t realized it yet, currencies have recently become one of the hottest products to trade. With $1.9 trillion in daily turnover, it is the largest market in the world. In the past, access to this mkt was restricted to large players such as hedge funds, CTAs and institutional investors due to regulation, capital requirements and technology.
  • Good Morning, my name is Kathy Lien, the Chief Currency Strategist of Forex Capital Markets.It is certainly good to see so many people interested in foreign exchange. If you haven’t realized it yet, currencies have recently become one of the hottest products to trade. With $1.9 trillion in daily turnover, it is the largest market in the world. In the past, access to this mkt was restricted to large players such as hedge funds, CTAs and institutional investors due to regulation, capital requirements and technology.
  • Good Morning, my name is Kathy Lien, the Chief Currency Strategist of Forex Capital Markets.It is certainly good to see so many people interested in foreign exchange. If you haven’t realized it yet, currencies have recently become one of the hottest products to trade. With $1.9 trillion in daily turnover, it is the largest market in the world. In the past, access to this mkt was restricted to large players such as hedge funds, CTAs and institutional investors due to regulation, capital requirements and technology.
  • Good Morning, my name is Kathy Lien, the Chief Currency Strategist of Forex Capital Markets.It is certainly good to see so many people interested in foreign exchange. If you haven’t realized it yet, currencies have recently become one of the hottest products to trade. With $1.9 trillion in daily turnover, it is the largest market in the world. In the past, access to this mkt was restricted to large players such as hedge funds, CTAs and institutional investors due to regulation, capital requirements and technology.
  • Good Morning, my name is Kathy Lien, the Chief Currency Strategist of Forex Capital Markets.It is certainly good to see so many people interested in foreign exchange. If you haven’t realized it yet, currencies have recently become one of the hottest products to trade. With $1.9 trillion in daily turnover, it is the largest market in the world. In the past, access to this mkt was restricted to large players such as hedge funds, CTAs and institutional investors due to regulation, capital requirements and technology.
  • Good Morning, my name is Kathy Lien, the Chief Currency Strategist of Forex Capital Markets.It is certainly good to see so many people interested in foreign exchange. If you haven’t realized it yet, currencies have recently become one of the hottest products to trade. With $1.9 trillion in daily turnover, it is the largest market in the world. In the past, access to this mkt was restricted to large players such as hedge funds, CTAs and institutional investors due to regulation, capital requirements and technology.
  • Good Morning, my name is Kathy Lien, the Chief Currency Strategist of Forex Capital Markets.It is certainly good to see so many people interested in foreign exchange. If you haven’t realized it yet, currencies have recently become one of the hottest products to trade. With $1.9 trillion in daily turnover, it is the largest market in the world. In the past, access to this mkt was restricted to large players such as hedge funds, CTAs and institutional investors due to regulation, capital requirements and technology.
  • Good Morning, my name is Kathy Lien, the Chief Currency Strategist of Forex Capital Markets.It is certainly good to see so many people interested in foreign exchange. If you haven’t realized it yet, currencies have recently become one of the hottest products to trade. With $1.9 trillion in daily turnover, it is the largest market in the world. In the past, access to this mkt was restricted to large players such as hedge funds, CTAs and institutional investors due to regulation, capital requirements and technology.
  • Good Morning, my name is Kathy Lien, the Chief Currency Strategist of Forex Capital Markets.It is certainly good to see so many people interested in foreign exchange. If you haven’t realized it yet, currencies have recently become one of the hottest products to trade. With $1.9 trillion in daily turnover, it is the largest market in the world. In the past, access to this mkt was restricted to large players such as hedge funds, CTAs and institutional investors due to regulation, capital requirements and technology.
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  • Five Ways Trade Currencies

    1. 1. 5 Ways to Trade Currencies Kathy Lien Director of Currency Research
    2. 2. <ul><li>DISCLAIMER: GFT refers to Global Futures & Forex, Ltd. and all of its divisions, branches and subsidiaries, including Global Forex Trading, GFT Global Markets Asia Pte. Ltd. and GFT Global Markets UK Limited. [In the United Kingdom,] GFT Global Markets UK Limited is authorized and regulated by the United Kingdom Financial Services Authority. Each investment product is offered only to and from jurisdictions where solicitation and sale are lawful. Trading of foreign exchange contracts, contracts for differences, derivatives and other investment products which are leveraged, can carry a high level of risk, and may not be suitable for all investors. It is possible to lose more than the initial investment. In Australia, GFT means Global Futures & Forex, Ltd. ARBN 103 508 461, AFS License 226625. A Product Disclosure Statement (PDS) is available at _www.gft.com.au. You should read and consider the PDS before making any decision to deal in GFT products. This [advertisement] is published by GFT Global Markets Asia Pte. Ltd. (Company Registration Number 200717665N) in Singapore for informational purposes only and is not an offer or a solicitation to deal in any investment product or to enter into any legal relations, nor an advice or a recommendation with respect to such investment product. © 2009 Global Futures & Forex, Ltd. All rights reserved. </li></ul><ul><li>DISCLAIMER: This presentation and the information provided here should not be relied upon as a substitute for extensive independent research before making your investment decisions. Global Forex Trading is merely providing this presentation for your general information. This presentation and its information does not take into account any particular individual’s investment objectives, financial situation, or needs. All investors should obtain advice based on their unique situation before making any investment decision based upon this forum or any information contained within. In addition, any projections or views of the market provided by the author may not prove to be accurate. Global Forex Trading, Boris Schlossberg, and Kathy Lien will not be responsible for any losses incurred on investments made by readers and clients as a result of any information contained in this column. Global Forex Trading, Boris Schlossberg, and Kathy Lien do not render investment, legal, accounting, tax or other professional advice. If such advice is sought, or other expert assistance is required, the services of a competent professional should be sought. </li></ul>Disclaimer
    3. 3. <ul><li>Brain Teasers </li></ul><ul><li>3 Trading Perspectives </li></ul><ul><li>5 Different Ways to Trade Currencies </li></ul><ul><li>What Type of Trader Are You? </li></ul><ul><li>Bonus: My Favorite Trading Strategy </li></ul>Agenda
    4. 4. Exercise Your Brain
    5. 5. Brain Teasers
    6. 6. OTTFFSS _? Brain Teasers
    7. 7. 3 Trading Perspectives
    8. 8. <ul><li>Fundamental Traders </li></ul><ul><li>Technical Traders </li></ul><ul><li>Realistic Traders </li></ul>3 Trading Perspectives
    9. 9. <ul><li>Macro </li></ul><ul><li>Micro </li></ul><ul><li>Monetary Policy </li></ul>3 Ms of Trading
    10. 10. 5 Ways to Trade
    11. 11. <ul><li>Sticking with the Trend </li></ul><ul><li>Going for Yield </li></ul><ul><li>Anticipating News </li></ul><ul><li>Following the Flow </li></ul><ul><li>Fading Sentiment </li></ul>5 Ways to Trade
    12. 12. EUR/USD Source: DealBook 360 Sticking with the Trend
    13. 13. USD/JPY Source: DealBook 360 Sticking with the Trend
    14. 14. Sticking with the Trend <ul><li>How to Trade the Bollinger Bands </li></ul><ul><li>The First Break </li></ul><ul><li>Retrace </li></ul>
    15. 15. EUR/USD Source: DealBook 360 The First Break
    16. 16. AUD/JPY Source: DealBook 360 The First Break
    17. 17. GBP/USD Source: DealBook 360 Retrace
    18. 18. USD/CHF Source: DealBook 360 Retrace
    19. 19. Sticking with the Trend Increase Your Chance of Success By Keeping an Eye on Data
    20. 20. <ul><li>Set it and Forget it </li></ul><ul><li>Trade Currencies Like Stocks </li></ul><ul><li>Interest Rates Matter </li></ul><ul><li>Popularity of the Carry Trade </li></ul>Going for Yield The views of the author are not necessarily those of GFT, its owners, officers, agents or employees. In addition, any projections or views of the market provided by the author may not prove to be accurate.
    21. 21. Source: DealBook 360 AUD/USD +45% then -35% Going for Yield
    22. 22. Source: DealBook 360 EUR/JPY +30% the -33% Going for Yield
    23. 23. Going for Yield How Can you Determine Where Interest Rates Are Headed? Put Yourself Into the Shoes of the Central Banker
    24. 24. <ul><li>Be Ahead of the Game </li></ul><ul><li>Short Term Trades – Right or Out </li></ul><ul><li>Tight Stop, Instant Gratification </li></ul><ul><li>Only Problem: Getting the Economic Prediction Right </li></ul>Anticipating News
    25. 25. Friday January 23, 2009 UK GDP (Q4) 4:30 AM ET Expectations: -1.2% (QoQ) / -1.4% (YoY) Previous: -0.6% (QoQ) / 0.3% (YoY) Our Call: Weaker GDP Anticipating News
    26. 26. Source: DealBook 360 GDP -1.5% QoQ -1.8% YoY Canadian Retail Sales
    27. 27. What are the Clues? Anticipating News
    28. 28. Retail Sales + Trade Balance = GDP Anticipating News Source: Bloomberg
    29. 29. January 19, 2009 New Zealand Consumer Prices (QoQ) 4:45 PM ET Expectations: -0.4% QoQ, 3.5% YoY Previous: 1.5% QoQ , 5.1% YoY Our Call: Weaker CPI Anticipating News
    30. 30. Source: DealBook 360 NZD CPI -0.5% QoQ 3.4% YoY New Zealand CPI
    31. 31. Anticipating News What are the Clues? German Retail Sales and Factory Orders Were Weak
    32. 32. <ul><li>News Moves Markets </li></ul><ul><li>No Guessing </li></ul><ul><li>Lasting Impact </li></ul>Following the Flow
    33. 33. Source: DealBook 360 UK GDP Fall More than Expected 0 70 -80 Pips UK GDP
    34. 34. Source: DealBook 360 NZD CPI Weaker than Expected 70 Pips New Zealand CPI
    35. 35. Picking Tops and Bottoms is Tempting, But Tough! Source: DealBook 360 -35% -7500 Pips In 4 months Fading Market Sentiment
    36. 36. Source: DealBook 360 Magazine Covers
    37. 37. Magazine Covers
    38. 38. Trader What Kind of Trader Are You?
    39. 39. What kind of Trader are You? <ul><li>Short Term vs. Long Term </li></ul><ul><li>High Probability, High Profit </li></ul><ul><li>News, Charts or Both </li></ul><ul><li>Majors or Crosses </li></ul>
    40. 40. Bonus! Trading Strategy: Extension Fade
    41. 41. Extension Fade
    42. 42. Extension Fade
    43. 43. Extension Fade
    44. 44. Extension Fade Trading Rules <ul><li>Look for 7 consecutive days of weakness, where the close of each day is lower than the open. </li></ul><ul><li>Buy at 5pm ET, which is when the next trading candle begins </li></ul><ul><li>Place stop 30 pips below the entry price </li></ul><ul><li>Close half of the position when it moves by 2 times the amount risked. Move the stop on the remaining half to your initial entry. </li></ul><ul><li>Close remaining position when price has moved by 4 times the amount risked or 120 pips. </li></ul>The views of the author are not necessarily those of GFT, its owners, officers, agents or employees. In addition, any projections or views of the market provided by the author may not prove to be accurate.
    45. 45. Source: DealBook 360 Extension Fade
    46. 46. Source: DealBook 360 Extension Fade
    47. 47. Extension Fade Does the Strategy Work for Other Currency Pairs?
    48. 48. Source: DealBook 360 USD/CAD Example
    49. 49. Extension Fade Can the First Target be Altered?
    50. 50. Extension Fade What Happens if the Move Continues for More than 7 Days?
    51. 51. Extension Fade
    52. 52. Source: DealBook 360 GBP/USD Example
    53. 53. Extension Fade Can You Trade a 6 Day Fade?
    54. 54. Questions? Agenda
    55. 55. Join Us! Premium Presentation Feb 23, 4:30pm – 6:00pm Strategies to Effectively Anticipate and React to Currency News *Open to new and existing GFT Clients Limited seating. Inquire at GFT Booth.
    56. 56. Disclaimer DISCLAIMER: GFT refers to Global Futures & Forex, Ltd. and all of its divisions, branches and subsidiaries, including Global Forex Trading, GFT Global Markets Asia Pte. Ltd. and GFT Global Markets UK Limited. [In the United Kingdom,] GFT Global Markets UK Limited is authorized and regulated by the United Kingdom Financial Services Authority. Each investment product is offered only to and from jurisdictions where solicitation and sale are lawful. Trading of foreign exchange contracts, contracts for differences, derivatives and other investment products which are leveraged, can carry a high level of risk, and may not be suitable for all investors. It is possible to lose more than the initial investment. In Australia, GFT means Global Futures & Forex, Ltd. ARBN 103 508 461, AFS License 226625. A Product Disclosure Statement (PDS) is available at _www.gft.com.au. You should read and consider the PDS before making any decision to deal in GFT products. This [advertisement] is published by GFT Global Markets Asia Pte. Ltd. (Company Registration Number 200717665N) in Singapore for informational purposes only and is not an offer or a solicitation to deal in any investment product or to enter into any legal relations, nor an advice or a recommendation with respect to such investment product. © 2009 Global Futures & Forex, Ltd. All rights reserved. DISCLAIMER: This presentation and the information provided here should not be relied upon as a substitute for extensive independent research before making your investment decisions. Global Forex Trading is merely providing this presentation for your general information. This presentation and its information does not take into account any particular individual’s investment objectives, financial situation, or needs. All investors should obtain advice based on their unique situation before making any investment decision based upon this forum or any information contained within. In addition, any projections or views of the market provided by the author may not prove to be accurate. Global Forex Trading, Boris Schlossberg, and Kathy Lien will not be responsible for any losses incurred on investments made by readers and clients as a result of any information contained in this column. Global Forex Trading, Boris Schlossberg, and Kathy Lien do not render investment, legal, accounting, tax or other professional advice. If such advice is sought, or other expert assistance is required, the services of a competent professional should be sought. CD08BKU.002.021809

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